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Genie Energy (NYSE:GNE) Is Due To Pay A Dividend Of $0.075

The board of Genie Energy Ltd. (NYSE:GNE) has announced that it will pay a dividend on the 31st of May, with investors receiving $0.075 per share. This payment will result in a dividend yield of 2.0%, providing shareholders with a modest boost in returns.

Prior to this announcement, Genie Energy’s dividend made up a large proportion of earnings, but only 15% of free cash flows. This indicates that the company has plenty of cash left over for reinvestment in the business. However, if the company is unable to improve its earnings, the dividend may be at risk, as the payout ratio could reach 103%.

Genie Energy has a track record of paying dividends, but the consistency of these payments over a full economic cycle is questionable. The annual dividend has been growing at a rate of 2.5% per annum over the last 9 years, but with fluctuations in the payments, the total shareholder return may be limited.

While the company has been able to generate enough cash to cover its dividend in the short term, the sustainability of the current payment level is uncertain. It’s important for investors to consider all factors when assessing a company, including potential warning signs and other investment opportunities.

Overall, Genie Energy is not considered a top-tier income providing stock, and investors should exercise caution when evaluating its dividend potential. This article by Simply Wall St provides unbiased commentary based on historical data and analyst forecasts, and is not intended to be financial advice.

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